MOBILIZE SHOWS ITS AMBITIONS IN SERVICES AND TECHNOLOGY AND AIM 20 % OF RENAULT GROUP SALES IN 2030
- Mobilize drives the transformation of Renault Group in the new mobility value chain, and confirms its objective of representing 20 % of group turnover in 2030.
- By constructing its model around the ‘Vehicle-as-a-Service‘, Mobilize reverses the classic equation of the automotive industry in from services meeting customer needs to the product.
- Mobilize sets up an integrated software ecosystem, relying on its mobility subsidiaries.
- Mobilize strengthens its ties with RCI Bank and Services who becomes Mobilize Financial Services, and is acceleratinga operational leaseinsurance and payments.
- Grace to data usage, Mobilize may offer mobility services, energy, financing, insurance, payments, maintenance and refurbishment, and reduce the cost of use for his clients.
- These services perform even better when they rely on vehicles specifically designed for new mobility by the Mobilize teams.
- This strategy will to the activities of Mobilize, except Mobilize Financial Services, to achieve double-digit profitability of each of its activities by 2027with a break-even operating margin target in 2025.
In January 2021, Renault Group presented the Renaulution plan aimed at transforming the group into a competitive, technological and responsible company, and at positioning itself, thanks to Mobilize, on the new mobility value chain.
Mobilize today presents its strategy to project the group beyond the automotive sector, generate recurring revenue and achieve the objective of achieving 20% of Renault Group’s turnover by 2030.
A business model dedicated to services to meet the challenges of mobility
In a context of major changes for the automotive industry, Mobilize is developing a new business model around VaaS (Vehicle-as-a-Service), with a complete offer based on an integrated software ecosystem.
Focused on usage rather than ownership, Mobilize offers in-vehicle services to meet the need for easier, more accessible, greener and more affordable mobility solutions.
“Mobilize sells services, not vehicles, which helps generate recurring revenue and lower running costs for our customers. We have chosen to cover the elements of the mobility value chain that have the most strong growth and margin potential. Thus, with the VaaS model and based on an integrated software ecosystem, we offer a range of services ranging from financing solutions to insurance, including energy and maintenance. The vehicle becomes a service platform, allowing to multiplyr by 3 the turnover generated during its life cycle, » noted Clotilde Delbos, General Manager of Mobilize.
The Mobilize model is based on :
- A ecosystem software totally integrated which allows, from the vehicle (Software Defined Vvehicle), to offer all services to professional and private customers. This ecosystem will be based on the technological bricks already operational by Mobilize subsidiaries1. Mobilize has access through its subsidiaries and through Renault Group to more than 600 developers, which will enable it to launch a first version of Software Defined Vehicle from 2023.
- Dedicated vehicles : Mobilize develops its own vehicles, 100% electric and specially designed for dedicated, shared and intensive use. Although Mobilize services are brand or model agnostic, Mobilize vehicles help maximize the reduction in Total Cost of Ownership (TCU) for mobility operators. Five elements guide the design and engineering teams in their design: durability, ‘over-the-air’ updateability, ease of cleaning-maintenance-repair, reduced environmental footprint and a rich and compelling customer experience.
- A full range of services :
- Financial services : Through RCI Bank and Services, Mobilize offers financing, insurance and payment services. To strengthen the links between the two entities, RCI Bank and Services changes its name and becomes Mobilize Financial Services.
- Energy : Mobilize offers a complete range of services related toenergy and charging to support its customers (mobility operators, fleet managers and individuals) at home, in the workplace and on the road. These services include Mobilize Smart Charge, Mobilize Charge Pass (providing access to 260,000 stations, including 1,600 Ionity fast charging stations), Battery Certificate and installation of charging stations by Mobilize Power Solutions.
- Maintenance and Repair : By relying in particular on data for the predictive maintenance of vehicles, Mobilize will use the dealer network and Renault Group Refactories, such as that of Flins, to repair and recondition its vehicles. By giving them a second and third life, Mobilize increases their use and their profitability.
The capillarity of the Renault Group dealer network, 6,000 points of sale in Europe, allows Mobilize to deploy its offers and offer a real “phygital” journey to its customers.
Three market segments with great potential
The customers Mobilize targets represent three high-potential market segments.
1. The particulars and fleets of small to medium taiIthe
Thanks to Mobilize Financial Services, Mobilize will accelerate the deployment of mobility solutions through long-term rental and car subscription offers and thus benefit from the growth of more than 80%2 of the operational leasing market. Mobilize Financial Services’ objective is to reach a fleet size of 1 million rental vehicles and 200,000 subscription vehicles by 2030.
At the same time, Mobilize Financial Services will accelerate its used vehicle financing activity, relying in particular on the deployment of connected electric vehicles, to act on the entire vehicle life cycle and offer a integrated, going as far as remarketing and recycling the vehicle. In addition, Mobilize Financial Services will expand its range of services around two main areas: Because insurtech, leveraging car connectivity to launch usage-based insurance products; and the creation of a ecosystem of payments which brings together charging, universal payments (in and out of the car) and offers Buy now Pay Later3. This ecosystem will be driven by an eco-loyalty program encouraging its customers to adopt behavior that respects the environment.
2. Lpeople mobility operators
With Mobilize Driver SolutionsMobilize offers a range of services for taxi and VTC drivers and operators: subscription to the 100% electric LIMO vehicle, insurance, maintenance, charging, assistance.
Mobilize becomes a solution provider for car-sharing operators with DUO. Launched in 2023, DUO will be 100% electric, offered on subscription and integrating insurance, software solutions for fleet and user management, and maintenance. DUO will allow a TCU reduction of -35% compared to a 4-seater electric vehicle, will be made from 50% recycled materials and will be 95% recyclable. A cargo variant, BENTO, will also be offered in car-sharing and subscription for craftsmen.
3. Lhe last mile delivery operators and professionals
Mobilize enters the growing market (+7%)4 per year until 2030) of last-mile delivery by providing operators with complete service solutions that fit into new city policies.
These services will first be offered around Kangoo E-Tech electric, Master E-Tech electric, as well as vehicles outside the group, before the launch of HIPPO in 2026 which will allow a -30% reduction in the TCU compared to competition. These services include all the services offered by Mobilize, with a particular focus on charging and optimizing fleet management using data.
The services offered by Mobilize thus facilitate the emergence of electric mobility, while:
- Reducing costs for its customers;
- Protecting its customers against a decline in residual value because Mobilize retains ownership of the vehicle;
- Increasing the life cycle of products and reducing the carbon footprint;
- Multiplying the turnover per vehicle;
- Generating recurring revenue.
Mobilize is thus in a unique position to represent 20 % of Renault Group revenue by 2030. With a recurring revenue model, Mobilize is not subject to the cycles of the automotive industry.
This strategy enables Mobilize to target:
- A 70% growth in the number of financial services sold to its customers to reach 8 million in 2030.
- A doubling by 2025 of the fleet of vehicles financed by Mobilize Financial Services in operational leasing, and a target of one million vehicles in 2030, 70% of which will be electric vehicles.
- A 2030 objective of 150,000 to 200,000 vehicles used by mobility operators, 80% of which are electric vehicles.
- A target of 165,000 charging stations installed in 2030 (compared to 22,000 in 2021).
In addition, this strategy will enable Mobilize’s businesses, excluding Mobilize Financial Services, to achieve double-digit profitability from each of its businesses by 2027, with a breakeven operating margin target in 2025.
| Insurance & Financial Services
(Millions of units)
| Fleet – Operational Rental
(Thousands of units)
| Fleet – Mobility operators
(Thousands of units)
|8||35-40|| 150 – 200
| Charging stations installed
(Thousands of units)
| THAT TOTAL
(% of Renault Group turnover)
|6%||~ 10%||~ 20%|
* Mobilize Day is available live and in replay at https://events.mobilize.com
Mobilize, a Renault Group brand, offers flexible services around mobility, energy and data to meet the new needs of individuals, businesses, cities and territories. Built around open ecosystems, Mobilize encourages a sustainable energy transition, in line with Renault Group’s objective of achieving carbon neutrality by 2040 in Europe, and its ambition to develop the value of the circular economy.
For more information, visit mobilize.com or follow Mobilize on Twitter, Instagram and LinkedIn.
1 bipi, glide.io, Karhoo, iCabbi, Mobilize Power Solutions, Zity by Mobilize
2 Source: NV Market Evolution – Deloitte G5 Europe/RCI Bank and Services
3 Buy now, pay later
4 Source: EVProject/Mobilize internal analysis
2022 05 09 Mobilize Day – Release EN